Jason Posted February 27 Share Posted February 27 What is the differences between technical analysis and fundamental analysis? How to decide which approach to use? 1 Quote Link to comment Share on other sites More sharing options...
ParkChoi Posted February 29 Share Posted February 29 Fundamental analysis looks at a company's financial health and helps assess the risks associated with an investment. Its used for long-term investment strategies. Whereas Technical analysis is the study of historical price actions which is used to spot trends and patterns. Both have their own advantages and disadvantages. Therefore, it's mandatory to understand both in detail and tailor it to your trading strategy. Hope this helps. Quote Link to comment Share on other sites More sharing options...
boltushkin Posted February 29 Share Posted February 29 On 2/27/2024 at 6:19 PM, Jason said: What is the differences between technical analysis and fundamental analysis? How to decide which approach to use? Technical analysis involves analyzing past market data, such as price and volume, to identify patterns and trends that can help predict future price movements. It focuses on chart patterns, indicators, and statistical analysis to make trading decisions. On the other hand, fundamental analysis involves evaluating the intrinsic value of an asset by examining economic, financial, and qualitative factors that could influence its price. This includes factors like economic indicators, company financials, geopolitical events, and market sentiment. Quote Link to comment Share on other sites More sharing options...
Upoctin Posted March 6 Share Posted March 6 In the world of investing, two main analysis approaches guide decision-making: technical analysis and fundamental analysis. Understanding their differences is crucial. Fundamental analysis digs deep into a company's financial health, like reading a report card. Analysts pore over financial statements, economic data, and industry trends to assess a stock's intrinsic value. They aim to identify undervalued assets with long-term growth potential. This method is like valuing a house based on its size, condition, and location. Technical analysis, on the other hand, focuses on the market itself. Imagine studying a weather chart. Technicians analyze historical price and volume data to identify trends and predict future price movements. They use charts and technical indicators to spot potential entry and exit points for trades. This approach assumes market sentiment influences price action, and past patterns can repeat. Here's the key difference: fundamental analysis looks at the company's why (its value), while technical analysis focuses on the how (price movements). Ideally, investors can combine both for a well-rounded perspective. However, their usefulness depends on your goals. Fundamental analysis shines for long-term investors seeking undervalued stocks, while technical analysis suits short-term traders looking to capitalize on price movements. https://www.nodepositrewards.com/casinos/art-casino/ Quote Link to comment Share on other sites More sharing options...
Jason Posted March 11 Author Share Posted March 11 On 2/29/2024 at 4:00 PM, ParkChoi said: Fundamental analysis looks at a company's financial health and helps assess the risks associated with an investment. Its used for long-term investment strategies. Whereas Technical analysis is the study of historical price actions which is used to spot trends and patterns. Both have their own advantages and disadvantages. Therefore, it's mandatory to understand both in detail and tailor it to your trading strategy. Hope this helps. Right! Quote Link to comment Share on other sites More sharing options...
Jason Posted March 11 Author Share Posted March 11 On 3/1/2024 at 12:48 AM, boltushkin said: Technical analysis involves analyzing past market data, such as price and volume, to identify patterns and trends that can help predict future price movements. It focuses on chart patterns, indicators, and statistical analysis to make trading decisions. On the other hand, fundamental analysis involves evaluating the intrinsic value of an asset by examining economic, financial, and qualitative factors that could influence its price. This includes factors like economic indicators, company financials, geopolitical events, and market sentiment. Thank you! Quote Link to comment Share on other sites More sharing options...
Jason Posted March 11 Author Share Posted March 11 On 3/6/2024 at 2:52 PM, Upoctin said: In the world of investing, two main analysis approaches guide decision-making: technical analysis and fundamental analysis. Understanding their differences is crucial. Fundamental analysis digs deep into a company's financial health, like reading a report card. Analysts pore over financial statements, economic data, and industry trends to assess a stock's intrinsic value. They aim to identify undervalued assets with long-term growth potential. This method is like valuing a house based on its size, condition, and location. Technical analysis, on the other hand, focuses on the market itself. Imagine studying a weather chart. Technicians analyze historical price and volume data to identify trends and predict future price movements. They use charts and technical indicators to spot potential entry and exit points for trades. This approach assumes market sentiment influences price action, and past patterns can repeat. Here's the key difference: fundamental analysis looks at the company's why (its value), while technical analysis focuses on the how (price movements). Ideally, investors can combine both for a well-rounded perspective. However, their usefulness depends on your goals. Fundamental analysis shines for long-term investors seeking undervalued stocks, while technical analysis suits short-term traders looking to capitalize on price movements. https://www.nodepositrewards.com/casinos/art-casino/ Thankss for the info Quote Link to comment Share on other sites More sharing options...
boltushkin Posted March 12 Share Posted March 12 On 2/27/2024 at 6:19 PM, Jason said: What is the differences between technical analysis and fundamental analysis? How to decide which approach to use? I utilize a combination of technical and fundamental analysis to make informed trading decisions. Technical analysis helps me identify trends, patterns, and key levels in price charts, which informs my entry and exit points. Fundamental analysis, on the other hand, allows me to assess the broader economic and geopolitical factors that may impact currency movements, such as interest rates, economic data releases, and geopolitical events. By integrating both approaches, I aim to develop a comprehensive understanding of the market and increase the probability of successful trades. Quote Link to comment Share on other sites More sharing options...
jamante Posted March 27 Share Posted March 27 fundamentals relies more on sentiments, like news and events that happens that might affect the currency you are wanting to trade, that way it gives you signs to generate conclusions to be base your next trade on.. on the other technical relies on studies of charts and support and resistance and price actions. the things you see people drawing and generating their conclusions on a chart trying to figure out the next move. well its okay to understand both if you ask me take a bit from both before making a trade, and its okay to specialize on on over the other, both methods are actually a learning process that would help us trades make good trades. Quote Link to comment Share on other sites More sharing options...
bigxy Posted March 28 Share Posted March 28 If the fundamentals are strong then we wait looking for the technicals to be in line with the fundamentals as a confluence for either buying or selling any underlying asset. Quote Link to comment Share on other sites More sharing options...
boltushkin Posted April 28 Share Posted April 28 Technical analysis is often perceived as simpler than fundamental analysis due to its focus on historical price data and chart patterns, which can be more straightforward to interpret for some traders. Technical analysis relies on mathematical indicators and visual patterns, making it easier to apply consistent methodologies across different markets and timeframes. Also technical analysis tends to provide clear entry and exit signals, which can simplify decision-making for traders. Quote Link to comment Share on other sites More sharing options...
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